You can't claim input tax on these three items! They don't fall within the definition of secondhand goods

If, for example, you run a dairy farm and decide to buythree cows from a neighboring farmer. You can't claimVat on these as second-hand goods.

#2: Gold coins issued by the Reserve Bank

Let's say, you're aprecious metals dealer and you decide to buy Kruger Rands from aclient in need of cash. You can't claim notional input tax on these becausethey were supplied at the zero-rate and they aren't second-handgoods.

#3: Certain mining rights

For example, you're a farmer and witha piece of land you buy, comes the right to prospectgranted in terms of Section 17 of the Mineral andPetroleum Resources Development Act, 2002. Theprospecting right isn't second-hand goods and youcan't claim notional input tax.

Here's the bottom line: The items above don't fall within the definition of second-hand goods. So the Vat rules that apply to the purchase of second-hand goods don't apply to them. This means you can't claim input tax back on these items.

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